New large denomination banknotes will allow Azerbaijan to save up to € 10 million in the next 5 years - Central Bank
Azerbaijan, Baku, Dec. 15 / Trend. Trend I.Khalilova /
A quite objectively solution was prepared for the issuance of new large denomination banknotes in Azerbaijan, chairman of the Central Bank of Azerbaijan (CBA) Elman Rustamov told reporters on Friday.
"In recent years the proportion of the existing notes in circulation with a large denomination - 50 and 100 manat, increased significantly, which is great for the state of financial stress. According to international practice, their share should not exceed 60-65 percent. According to our calculations, the introduction of circulation of new banknotes of 200 and 500 manat in the next five years will save up to 10 million euros, "- said Rustamov.
According to him, in accordance with the international practice, 7-8 notes and the same amount of coins is issued. Today Azerbaijan uses six coins and six notes.
"It is possible that after a certain period of time when the country will need in the removal from circulation of coins of low denomination, then we will have to streamline the structure of currency. In this case, it may be to issue coins of large denominations. For example, in Europe there are metal coins of one and two euro, in Switzerland - at one and five Swiss francs, "- said the head of Central Bank.
The decision about denomination of coins, he said, depends on the economic structure of each country, as well as the scale of prices. "We are seriously examining this issue and in close consultation with international experts" - Rustamov said, adding that the issue is seen as the question of the new coin in one manat.
However, the head of the Central Bank does not currently see the need to retire metal coins of small denomination (one, three and five kopecks).
According to him, the refusal to accept them as a means of payment contrary to the law of the country and the Constitution. Coins, as well as banknotes are legal tender.
"Our statistics show that the Azerbaijani economy actively needs these coins, and this year, the demand for them has increased significantly, and this trend will continue in the coming years. Our studies show that the scale of prices in Azerbaijan is at a level that the need for metal coins will still be maintained, and they are widely used in shopping centers, "- said Rustamov.
In Azerbaijan, as a result of the currency denomination (in 2007 took a full transition to the new scale of prices), held the CBA, a complete replacement of old banknotes with new ones completed by 31 December 2006. Since 2007, Azerbaijan used only new banknotes as a means of payment, and it helped prevent the difficulties that might arise from trade and economic agents in connection with the circulation of notes in 19 denominations at once.
The total volume of the order of a new scale of rates was 1.7 billion manat with the stock for three years. Of the total amount of 94 percent of it were banknotes (1, 5, 10, 20, 50 and 100 manat) and six percent - metal coins (1, 3, 5, 10, 20 and 50 kopecks). The operating life of banknotes consists of three to five years, coins - 20 years. Today, much of the load falls on the banknotes of one and five manats. Their life cycle is 1.5-2 years, as they are in connection with the most frequent use of rapidly deformed. Therefore, to reduce the burden on them and reduce the cost of production of CBA is considering large denomination coins.
The official exchange rate for December 15 is 0,7849 AZN / USD.